Despite a robust legal framework for regulating cooperative institutions, major irregularities often remain undetected for 5–7 years. Large financial transactions of credit societies that are condected through banks and PAN linked accounts still fail to trigger Suspicious Transaction Reports (STRs). Political interference further weakens governance and accountability. Strengthening oversight requires empowering special cooperative courts, ensuring timely detection of irregularities, and fixing responsibility on those who fail to prevent or report financial misconduct.
The proverb 'He who is caught is the culprit; the rest remain above suspicion.has been prevalent in our society for many decades. But today, looking at the incidents in the cooperative sector, especially in cooperative banks and credit societies, and the actions taken against them, one repeatedly sees this proverb come true. An institution gets into trouble, its irregularities come to light, and then the entire system pounces on that one institution and its directors...(Read the full article in the August 2026 issue)